Wholesale In California

[M S]

Hello Everyone,

I am just getting started in this crazy world of real estate investing and have been looking for my niche to start on. And I have really generated an interest in the wholesaleing aspect. I have been reading the forums and other information on wholesaler's I can find and in this "down market" is trying to do get deals done in california a realistic expectations or is there places out of state that might be better for me to focus my efforts at least during this period in our economy? My primary goals at first will be to establishing a brand for myself and acquiring my list of investors at first. Just looking for thoughts, have read many posts in this section of the forum and have gained alot of information and tactics already. Thanks to everyone in advance!

[Aaron Norris]

Are there many first time buyer areas in Oxnard? I've seen a few at auction but I don't know the area and the home mix.

If a property ends up in an auction, it typically means that it's been listed with an agent and it never sold so the bank is trying to see if it will sell at auction.

I looked on auctionmls.com and there are only about 5 auctions left in 2008. Not to active.

However, I was looking at RealtyTrac just to get an idea of REO and pre-foreclosure activity and it looks like Oxnard it going to have some fun in 2009!

Upon looking at the numbers, East of N. Oxford Blvd looks pretty busy with REOs, trustee sales, and homes that are in advanced stages of being late. According to the California Association of Realtors, you've gone from a median price of 505k to 320k. This looks very much like parts of Orange County and they have plenty of room to fall. There were more option arm loans here and they are due to reset in large numbers. These loans were typically higher in value compared to subprime with supposedly less risky borrowers.

Problem is many of these borrowers could be hiding out and paying the teaser rate and won't walk until the reset is forced because of debt/equity ratios or until it naturally resets. They are probably paying less than rent now so why leave, right?

Anyway, long story short. Be careful in this area as it looks like one of those over inflated higher dollar markets. Not sure since I don’t live there but I bet you have an idea.

Don't go to other states to invest now. Investors in California are buying properties under $100k in markets where there are active buy sell markets (Moreno Valley, Sacramento). Some are now buying in LA, SD, and OC. Even if you invest in another state, you’ll still have to do all your due diligence, you need to build a team, and you’ll need to nurture relationships that send you inventory. All of that is made MUCH more difficult out of state.

Do some homework and hustle. Please consider attending a few auctions and watching the journey of a property or 10. Find a Realtor and start writing offers on homes that need work. They might call you crazy at first but when the banks decide to get real, they will finally give you a shot.

I can't imagine a more attractive and exciting market. It’s about respecting the market and not fearing it (Dad taught me that one). I’m not saying it’s always easy but most things worth while aren’t. There’s got to be some barrier to entry or everyone would do it.

Anyway, little long winded but I hope you decide to spend a few months and see if California can work for you.